Poland published worse-than-expected retail sales figures on Tuesday. It will also hold a bond action later in the day.

Polish retail sales rose a slower-than-expected 3.1% in September, compared with a year earlier, well below the 5.8% growth seen in August, the country’s statistics office said Tuesday.

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Annual sales growth in September was also well below the 4.4% increase forecast by 15 bank economists in a survey by Dow Jones Newswires.

The data confirm the ongoing economic slowdown, while the moribund situation in the labor market–an unemployment rate at 12.4% in September and expected to rise to 13%–makes it likely private consumption will weaken, said Piotr Lysienia, senior economist at Bank Pocztowy in Warsaw. Wage growth in Poland has slowed to below the rate of inflation, while employment has edged up and savings have been depleted.

This, as well as poor preceding September macroeconomic data, creates the conditions for Poland’s Monetary Policy Council to begin its easing cycle as early as November.

The finance ministry in Warsaw will offer between 6 billion zlotys and 9 billion zlotys ($1.91 billion and $2.87 billion) in two- and 10-year paper. The two-year bonds remain popular and pricing will be watched, as will the bidding on the new benchmark 10-year paper.

In Budapest, Hungary celebrates the anniversary of the 1956 revolt against Soviet occupation. Prime Minister Viktor Orban will make a speech, along with his predecessor Gordon Bajnai, a left-wing politician who led a caretaker government from 2009 to 2010 and is widely considered the only viable candidate to challenge Mr. Orban in 2014 elections.

OTHER NEWS

POLAND: Poland’s general government deficit is expected to narrow to 3.4% of economic output this year from 5% in 2011, according to data Monday from the European Union’s statistics agency Eurostat. Poland’s public finance debt as a share of gross domestic product will drop to 55.5% in 2012 from 56.4% last year, according to the Eurostat data, which is based on figures from the Polish finance ministry.

CZECH REPUBLIC: Czech Finance Minister Miroslav Kalousek Monday offered the coalition government’s clearest warning yet that it could call an early general election if it loses a key parliamentary vote on its austerity plans.

SLOVAKIA: Slovakia’s unemployment rate rose to 13.44 percent in September from 13.19 percent in August, official data showed on Monday.

HUNGARY: Hungarian officials should be able to reach an agreement with the International Monetary Fund and European Union on an aid deal, the country’s foreign minister said Friday.

“I think as far as the conditions of coming to an agreement with the EU and IMF, they will be met and I very much hope, and indeed I trust, this agreement will be made,” Hungarian Foreign Minister Janos Martonyi said during an appearance in Washington

About Emerging Europe

Emerging Europe Real Time provides sharp analysis and insight into what’s making news in Central and Eastern Europe. Drawing on the expertise of our reporters in the Czech Republic, Hungary, Poland, Russia and Turkey, the site provides an inside track on economics, politics and business in this emerging part of the European continent.